Taiwan tech Foxconn setting up $7 billion plant in US

New York, Jan 23: Taiwan technology giant Foxconn has announced that it was considering setting up a plant in the US with an investment of $7 billion.

The world’s largest contract electronics maker company’s chairman and chief executive, Terry Gou, on Sunday said the investment would likely generate thousands of jobs, if it goes ahead, the BBC reported.

The plan comes after US President Donald Trump in his inauguration speech reiterated his “America First” agenda meant overturning international trade treaties.

During his campaign, Trump had repeatedly threatened high import tariffs in order to encourage American and foreign companies to move production to the US.

He singled out China as a significant cause of lost manufacturing jobs in the US.

Foxconn — formally known as Hon Hai Precision — has most of its factories in China where it assembles Apple’s iPhones.

Last year, the firm took over Japanese electronics veteran Sharp and the display-making investment being considered in the US is thought to be under the new Sharp unit.

The White House website, updated after Trump’s inauguration, makes clear that the new administration will pursue plans to alter trading relationships with Asian countries.

Trump also said he will renegotiate the North American Free Trade Agreement (Nafta) with Canada and Mexico.